There has been an increase in IR35 reviews requested by contractors working in the public sector this week, following investigations into ‘off-payroll’ arrangements in the NHS.
The investigation by the health services regulatory body Monitor, discovered that 86 individuals working within NHS foundation trusts were liable to be investigated for their use of personal service companies. This is because the workers were asked to provide assurances over their tax position, but had not given them as of January 2014.
This news has led to other public sector contractors taking action and requesting IR35 reviews, as they become more aware of the repercussions of not providing assurances. HM Revenue and Customs are able to impose interest on top of any avoided tax, as well as issuing penalties of up to 100% in cases of deliberate concealment.
Also under investigation are 23 NHS trusts which were found to have at least one board member or senior staff member with ‘significant financial responsibility’ operating through their own personal service company. Nine of these trusts will face enforcement action.
Ben Dunn, Finance Director at JSA comments on the increase:“This investigation goes someway to show the power HMRC have in investigating IR35. Workers operating through personal service companies should ensure that they are providing the assurances requested by their regulatory body, so as to avoid coming under unnecessary investigation.”
To get your contract reviewed by JSA, contact us on 0800 25 26 40 today.